A.M. Best Upgrades Ratings of Security Mutual Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best has upgraded the financial strength rating to A- (Excellent) from B++ (Good) and the issuer credit rating (ICR) to “a-” from “bbb+” of Security Mutual Insurance Company (Security Mutual) (Ithaca, NY). The outlook for both ratings has been revised to stable from positive.

The rating actions on Security Mutual reflect the company's continued solid underwriting performance, favorable risk-adjusted capitalization and local market expertise within their niche of the personal property insurance market. These positive rating factors are somewhat offset by Security Mutual’s concentration risk exclusively in the state of New York marketplace and elevated underwriting expense ratio. The upgrade of the ICR to “a-” from “bbb+” further reflects A.M. Best's acknowledgement of the company's favorable performance in relation to its peers. The outlook reflects A.M. Best's expectation that risk-adjusted capitalization and underwriting performance should continue to trend favorably.

The outlooks could be revised to negative if the company's favorable operating performance were to deteriorate or if risk-adjusted capitalization were to weaken.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

Key insurance criteria reports utilized:

• Catastrophe Analysis in A.M. Best Ratings
• Evaluating U.S. Surplus Notes
• Risk Management and the Rating Process for Insurance Companies
• Understanding BCAR for Property/Casualty Insurers

This press release relates to rating(s) that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best’s Ratings & Criteria Center.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2015 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

A.M. Best Company
Kimberly Muccia, 908-439-2200, ext. 5731
Financial Analyst
[email protected]
or
Gary Davis, 908-439-2200, ext. 5665
Assistant Vice President
[email protected]
or
Christopher Sharkey, 908-439-2200, ext. 5159
Manager, Public Relations
[email protected]
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
[email protected]

Source: A.M. Best Company

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